Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By dannyboy
#2904 Hi All,

I'm new to this forum - just found it today. I've had a look around and can't find the answer to my question, so I'm hoping someone will be abl;e to shed some light on this for me.

I was made bankrupt by a creditor in December, and my total debts are about £46K. No IPO was made as I'm on a very low income.

I have a credit card with Capital One that I opened in April 2003, and it has a credit limit of £200. At the time of completing the various questionaires for the OR, I owed £20 on the card, which I included. I am still in posession of the card. I understand as a bankrupt I am allowed to obtain upto £250 credit without having to inform the lender that I am bankrupt, does this apply to existing credit card accounts? I had recently opened a NatWest Step account, which they closed when OR informed them of my bankruptcy. I assumed that Capital One would close my credit card account too, but they haven't, they have continued to send me statements as normal. I assume OR wrote to them

My question basically is do I have to inform Capital One that I am bankrupt, bearing in mind the limit is only £200?

Thanks in advance for your help.
Regards,
DB
Last edited by dannyboy on Sun Jul 12, 2015 1:40 pm, edited 1 time in total.
By feenix
#2905 Hi Dannyboy, I'm a bit of a novice at this. But I thought the statutory limit was £500. I'd be inclined to keep quiet, I don't think you have any requirement to say anything to Capital One. You could always check to see whether your account has been frozen or not by trying to use the card for a small purchase.

Good Luck, Feenix
ByVanessa
#2906 Yes, No doubt.
User avatar
By JaneClack
#2908 Sorry to be a partypooper here but the debt should have been included in your bankruptcy - you do not have the choice to leave things out because it is not a lot of money. I know it was the creditor that did it but it will be on your credit file and it will look odd. I would not use the card and really you should inform the OR as soon as possible.
By dannyboy
#2913 Hi All,

Thanks for your responses, it's an interesting one as I would have expected OR to notify Capital One.

The debt was included in my bankruptcy, which at the time was £20 and as I haven't used the card since, the balance is still the same. From what I can gather, the account is still active, in that I can acces the account through the Online Account Management pages on C1's web site.

OR know about the card, it's limit and the fact that I still have it.

One for the CAB or my solicitor I think.

Thanks again,
DB
Last edited by dannyboy on Sun Jul 12, 2015 1:40 pm, edited 1 time in total.
User avatar
By Nicky
#2914 With questions like this, it is always best to go straight to the horses mouth and ask the OR him/herself. That way there is no doubt regarding the answer and you wont end up doing something that may jepodise your current situation. If the OR says you cant use it, then you have lost nothing.

Since you asked the question, it would be interesting to know the answer, so when you find out for sure, let us know. :wink:
BySonic
#2927 Hello

As Sarah said always worth contacing the OR in cases of doubt, as you wouldn't want to jeopardise your discharge especially over a silly credit card with a limit of £200!

The account MIGHT be still be showing as active, but I wouldn't get your hopes up, it may be a case of capital 1 simply not bothering to contact you, as happened with me (I had no money owing but had a card with them).

Lastly (and I hope this doesn't sound too patronising!), if you are still allowed to use the card etc bear in mind Captial one might have put you on the rates they use for people with adverse credit - about 29% APR, so ifyou use it pay of the balance in full or the interest'll kill you! :D
By dannyboy
#2932 Hi again,

I've written to the OR today about this, I'll let you know the outcome.

Incedentally, Capital One have now blocked access to my account via their web site, so maybe they've just found out.

Thanks for your replies.

Regards,
DB
Last edited by dannyboy on Sun Jul 12, 2015 1:41 pm, edited 1 time in total.
By dannyboy
#3359 Hi Again Guys,

I've just had my response from the OR about this.

He's told me that the debt was frozen from the date I was declared bankrupt, and I am not able to draw any more funds from my credit card.

Oh well.

Regards,
DB
Last edited by dannyboy on Sun Jul 12, 2015 1:41 pm, edited 1 time in total.
ByVanessa
#3360 Sorry if it seemed I was giving you bad advice but I seem to have posted at the same time as feenix and was agreeing with your comment, not theirs !

Im glad you came clean with the OR and will be steering clear of credit !
User avatar
By Nicky
#3365 Nevermind, was better to be safe than sorry tho :wink: